The truth behind cross-border payments: Frequently asked questions demystified
Abstract
This paper examines the evolving landscape of cross-border payments, highlighting the tension between innovation, interoperability and global financial inclusion. It explains how cross-border payments rely on interconnected closed-loop payment networks and correspondent banking relationships, while clarifying common misconceptions surrounding systems such as SWIFT, real-time payment rails, FinTech models and digital assets. The paper further explores the impact of regulatory frameworks, payment system rules, compliance obligations, and international standards on the speed, efficiency and accessibility of global payments. Emerging initiatives such as Project Nexus and Project Agorá are evaluated as potential pathways toward greater interoperability and harmonisation. Ultimately, the paper argues that meaningful innovation in cross-border payments can only be achieved through foundational cooperation, standardised infrastructure and multilateral collaboration that enables payments to be made to anyone, anywhere, anytime and in any form. This article is also included in the Business & Management Collection which can be accessed at http://hstalks.com/business.
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Author's Biography
Kenneth Wong is the Principal of ZandZ Consulting, specialising in payments and transaction banking. Ken has over 36 years of experience across both startups and international banks, having held such senior roles as global head of payments. He is also the inventor and patent holder of several live payment systems.
Mark G. Majeske is Senior Vice President of Faster Payments at Alacriti, where he leads the corporate faster payments strategy and product development of the Orbipay Payments Hub. He serves on the Faster Payments Council’s Board of Directors and chairs its Cross-Border Payments Work Group. Mark has previously led product development for the RTP® network, the FedNow® Service, and Zelle® at FIS, and was part of the team that designed, developed and launched the RTP network at The Clearing House. He has also worked in digital payments product development at JPMorgan Chase & Co., Citibank, SunTrust Banks (now Truist Financial Corporation) and TD Bank.
